The UK Joins CPTPP: Implications for the EU and Future Trade Opportunities
The United Kingdom's recent decision to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) marks a significant development in the nation's post-Brexit trajectory. CPTPP is a trade pact centered around the Pacific rim, and Britain's accession makes it the first European member of the bloc (Reuters, 2023). The move indicates the UK's interest in forging new trading relationships outside the European Union, but it also raises questions about the implications for the EU and any prospects of the UK rejoining the bloc in the future.
Joining the CPTPP allows the UK to access a vast market, with tariff-free trade opportunities for more than 99% of its exports to member countries (BFPG, 2023). CPTPP economies account for 15% of global trade and 13% of global GDP, providing the UK with significant new trading prospects (BFPG, 2023). Rishi Sunak, the British Chancellor, has described the UK's accession to the CPTPP as an example of the country exploiting its "post-Brexit freedoms" to open up new markets for British exporters that would have been impossible while it remained in the EU (Express and Star, 2023; Guernsey Press, 2023).
Euroskeptics argue that joining the CPTPP will make it even more challenging for the UK to rejoin the EU in the future, as the country will be required to align with the Indo-Pacific bloc's rules and standards at the expense of Brussels' regulations (Politico, 2023). Experts, however, suggest that the situation might be more complicated than that (Politico, 2023). While the UK already has trade agreements with most of the CPTPP members, apart from Malaysia, UK officials have stated that joining the CPTPP would deepen existing arrangements, with 99% of UK goods exported to the bloc becoming eligible for tariff-free trade (Sky News, 2023). In this context, it is essential to consider how the UK's membership in the CPTPP might affect its relationship with the EU.
On one hand, the UK's accession to the CPTPP could be viewed as a move away from the European Union, signaling a desire to diversify trade relationships and lessen reliance on the EU market. This could lead to increased competition for the EU, as the UK seeks to expand its trade presence in the Pacific rim and further distances itself from European regulations and standards. The UK's membership in the CPTPP may also serve as an example for other countries considering a shift away from the EU and towards other trade blocs.
On the other hand, the UK's CPTPP membership could potentially benefit the EU in some ways. As the first European member of the Indo-Pacific grouping (Standard, 2023), the UK may be in a unique position to act as a bridge between the EU and the CPTPP, fostering increased cooperation and trade between the two blocs. Furthermore, the UK's participation in the CPTPP may encourage European businesses to explore new opportunities in the Indo-Pacific region, potentially leading to increased economic growth for both the EU and the CPTPP.
In conclusion, the UK joining the CPTPP has several implications for the European Union. While it may hinder any hope of rejoining the EU in the future, as it requires alignment with theIndo-Pacific bloc's rules and standards, it also opens up new avenues for trade and cooperation between the EU and the CPTPP. The UK's CPTPP membership could lead to increased competition for the EU, as the UK diversifies its trade relationships and lessens its reliance on the European market. However, it could also provide opportunities for increased collaboration, with the UK potentially acting as a bridge between the two trade blocs.
Ultimately, the impact of the UK's accession to the CPTPP on the European Union will depend on how the relationship between the two blocs evolves in the coming years. As the UK navigates its post-Brexit future, it will be crucial for both the EU and the UK to find ways to maintain constructive dialogue and explore opportunities for mutually beneficial cooperation. In this context, the UK's CPTPP membership could serve as both a challenge and an opportunity for the European Union as it seeks to adapt to a changing global trade landscape.
BFPG. (2023). UK Accession to CPTPP. Retrieved from https://bfpg.co.uk/2023/03/uk-accession-cptpp/
Express and Star. (2023). Joining the CPTPP trade bloc: What does it mean for the UK? Retrieved from https://www.expressandstar.com/news/uk-news/2023/03/31/joining-the-cptpp-trade-bloc-what-does-it-mean-for-the-uk/
Guernsey Press. (2023). Joining the CPTPP trade bloc: What does it mean for the UK? Retrieved from https://guernseypress.com/news/uk-news/2023/03/31/joining-the-cptpp-trade-bloc-what-does-it-mean-for-the-uk/
Politico. (2023). Britain to join Asia-Pacific trade bloc CPTPP. Retrieved from https://www.politico.eu/article/britain-join-asia-pacific-trade-bloc-cptpp/
Reuters. (2023). Why is Britain joining Trans-Pacific trade pact? Retrieved from https://www.reuters.com/world/why-is-britain-joining-trans-pacific-trade-pact-2023-03-31/
Sky News. (2023). UK to join Indo-Pacific trade bloc in biggest trade deal since Brexit. Retrieved from https://news.sky.com/story/uk-to-join-indo-pacific-trade-bloc-in-biggest-trade-deal-since-brexit-12845758
Standard. (2023). Joining the CPTPP trade bloc: What does it mean for the UK? Retrieved from https://article-swipe.standard.co.uk/business/business-news/joining-the-cptpp-trade-bloc-what-does-it-mean-for-the-uk-b1071287.html